Buying Property in Thailand as a Foreigner

By
Education & Training with Property Investment Wise

 

Thailand is one of the world’s most famous places that one can enjoy a real life. Foreigners can enjoy the good tropical climate, high quality and affordable healthcare, convenience and comfort. Thailand is a unique place with orange-robed monks. A foreigner may maintain a simple lifestyle without extra expense or headaches. The beach is beautiful; people are friendly and a lot of delicious foods. The white sand beach, turquoise seas, rimmed beach islands, jagged limestone cliff and mountainous jungle retreats are quite interesting. The capital city of Thailand, which was an ancient Chinese trading port, has attracted a lot of expats. There are a lot of trade activities that take place in this town raising the living standards of people due to the businesses they operate.

 

 

Living in Thailand

 

Thailand is a place full of beautiful people, breathtaking beaches and other culinary delights that make foreigners want to own land. Thailand has had an influx of thousands of foreigners spending their money to buy land. Those that have ignored Thai laws have suffered serious consequences where they witness their money go to lose. If you want to invest or buy property in Thailand for foreigners, it is wise for you to do a detailed research and find out the laws and regulations governing property. The following are guidelines that may be helpful to foreign investors willing to buy land in Thailand.



Can foreigners buy property in Thailand?

 

The law does not allow foreigners to own land in Thailand. A foreign national who is interested in buying land has two options: either to purchase the earth through a limited company or a 30-year leasehold. However, a foreigner can buy apartments as long as more than 51 percent of the building is owned by a person from Thailand. Due to many legal restrictions of the property market in Thailand, foreigners have no option, but to look for other means to direct property purchase.

 

Some of the methods of owning land include;

  • Leasing

  • Land titles

  • Purchasing property through a company

  • Buying apartments.



  1. Buying an apartment

 

A foreigner may also own land in Thailand by purchasing an apartment. Due to the several legal restrictions that have been discussed above, most foreigners prefer buying an apartment or condominium in Thailand. It is important to note that a foreigner can only make a purchase of a home that has more than 50 percent of the building owned by citizens from Thailand.

Many factors are considered when buying land in Thailand. These factors include several considerations that foreigners should make before purchasing property in Thailand.

 

Some of the factors include;

  • The price of the property

  • Type of property

  • Location of a property

  • Reason for buying land

  • Workmanship

  • Quality of the property

  • Legal processes that are involved in purchasing the property

 

Buying a condo as a foreigner

 

Developments of condominium have emerged and increased to high levels in the last few years in Thailand. Condominium developments have increased in cities like Phuket, Bangkok and Pattaya. Many foreigners who decide to invest in real estate prefer purchasing a home. There are reasons as to why many foreigners opt to own a condo.

 

Some of the benefits of investing on a condo in Thailand include;

A foreigner may possess a condo using their name. All condominiums are issued with title deeds that are similar to strata titles. Another thing is that owners of a home may use one title deed as collateral. The maintenance fees of owning a condominium are lower in Thailand than in other regions. Homes are easier to rent out because of their location and general size. Reselling a condo is much faster and less hectic as compared to selling a house or land in Thailand. Foreigners are interested in buying land in Thailand for investing, residential purposes, to work and to live after retirement. Investing in Thailand is a robust and dynamic economic progress.

 

Buying a condo in Bangkok

 

Bangkok is one of the most beautiful places to live in Thailand because land appreciates at a high rate. Security is also enhanced meaning that people live at peace with each other. The method of payment of property in Bangkok is through off plan. You can pay a fee of about 30,000 while making reservations. The agreement is written in both English and Thai making it easier to understand all terms. The processes that follow are much more accessible so ownership of the property might take a shorter time as compared to other places. Common Area Maintenance bill is only paid once in a year. Little maintenance cost means that you will live free of expenses such as security wages, cleaning and management services among others.

 

2. Leasing Land

 

One of the ways that a foreign investor can own land in Thailand is by leasing it for 30 years. Leasing land in Thailand is not quite common; it usually occurs when a Thai woman is married to a foreigner. The Thai woman purchases the land as a citizen and stipulates with her estranged husband a lease agreement. If you want to rent land, ensure that all information on the agreement is accurate and that there is an appropriate title for the earth, you are leasing. The leasing contract states the period that you are renting the land. The agreement also states the registration fee, and your right to resell it.

 

3. Land titles

 

In Thailand, a piece of land can have different titles depending on several factors. The factors include the location of the property or whether a foreigner is allowed to lease the earth. Three of the seven land titles given in Thailand can be leased: Nor Sor Saam, Chanot and Nor Sor Saam Gor.

 

4. Purchasing land through a limited company

 

Acquiring land through a limited company is another alternative for a foreigner to own land in Thailand. You can form a Thai Limited Company, which can allow you to buy land. It is worth noting that a foreigner is not permitted to own more than half of the shares of a limited company. The company has to have a Thai citizen owning at least 51 percent of the company’s shares. If you own such a company, the law allows other shareholders to sign over the company’s rights to you. The immigration office in Thailand is aware of such procedures and, therefore, will do all it can to monitor the business of a foreigner.

 

Properties in Thailand for Sale

Some of the houses and apartments for sale in Thailand are Bangkok property, Chumphon property, Chiang Mai property like Ploenchit Collina in San Kampang, Hua Hin property, Chon Buri property, Koh Samui property, Ko Lanta property, Mae Rim property, Kui Buri property, Pattaya property and Pran Buri property among others.

 

Living in Thailand is now easier for foreigners since with such a guide they can make well-informed decisions about how to acquire property in Thailand.

 

Understanding the details is the key to wise investments. A foreigner should first ensure they know what type of property they can own, how to buy it, understand Thai laws regarding property then look for property they want to buy.





Posted by

Joe McCord works at REAA.

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